“Apple shares rose 6 percent after reporting strong second-quarter earnings and a $110 billion share buyback, led by record services revenue and a loyal customer base.”
Shares of Apple Inc. (AAPL) rose 6% in extended trading on Thursday, May 2, 2024, after the tech giant announced impressive second-quarter earnings and a massive $110 billion stock buyback program. The company’s revenue in the second quarter of 2024 was $90.75 billion, down 4% from a year earlier but slightly higher than analysts expected.
Income highlights
- Net income: $23.64 billion (up from $24.16 billion in Q2 2023)
- Earnings per share (EPS): Slightly up (exact figures not disclosed)
- Services revenue: Record $23.87 billion (up 14% from Q2 2023)
- iPhone sales: $45.96 billion (up from $51.33 billion in Q2 2023)
- Business in Greater China: $16.73 billion (up from $17.81 billion in Q2 2023)
CEO and CFO Comments
Apple CEO Tim Cook said, “We are pleased to report another strong quarterly performance driven by our strong product lineup and growing Services business.” “Our active base of installed equipment has reached an all-time high and we are confident in our ability to deliver innovation and value to our customers.”
“Thanks to very high levels of customer satisfaction and loyalty, our active base of installed devices has reached a new all-time high across all products and all geographies, and our business performance for the March quarter is at a new all-time high has set an EPS record,” said Luca Maestri, Apple’s chief financial officer.
Share price and dividends
Apple shares were up 6% at $183.46 as of 7:30 p.m. ET, after the earnings report. By Thursday’s close, the stock had lost 10% of its value so far this year amid concerns about the state of the iPhone business and weakness in China. The company also increased its quarterly dividend by 4% to 25 cents.
Conclusion
iphone strong second-quarter earnings and its massive share buyback program sent a positive signal to investors, leading to a significant increase in the company’s share price. Despite concerns over weak iPhone sales in China, Apple’s growing services business and loyal customer base have helped the company maintain its momentum. As the tech giant continues to provide innovation and value to its customers, investors will remain optimistic about its future prospects.
Frequently Asked Questions (FAQ)
Q. What was iphone revenue in Q2 2024?
A. $90.75 billion, down 4% from last year, but slightly higher than analysts expected.
Q. What was iphone net income in Q2 2024?
A. $23.64 billion, while in the second quarter of 2023 it was $24.16 billion.
Q. What were the highlights of Apple’s Q2 2024 earnings report?
A. Record services revenue of $23.87 billion, up 14% from Q2 2023.
Q. What is iphone stock buyback program?
A. A $110 billion share buyback program was announced along with the Q2 2024 earnings report.
Q. How did iphone stock price react to the earnings report?
A. Shares rose 6% to $183.46 in extended trading.
Additional Information
- Services Revenue: Apple’s Services segment includes revenue from the iphone Store, iphone Music, Apple TV+, iphoneCare, and other services.
- iPhone Sales: iPhone sales were $45.96 billion, up from $51.33 billion in Q2 2023.
- Greater China Business: Apple’s Greater China revenue was $16.73 billion, up from $17.81 billion in the second quarter of 2023.
- Dividend: iphone raised its quarterly dividend by 4% to 25 cents per share.
- Active Install Base: The active install base of Apple’s devices reached a new all-time high across all products and geographies.